Hu

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Yinping Hu
Marketing Management 2101
Professor Stefan Lippert
18 April 2014
Ontela PicDeck Case Study
Project Goal
To determine the most appropriate target customer segment in order to maximize growth
opportunities for both Ontela and its direct customerswireless carriers, who wants to
decrease churn and increase average revenue per user.
Qualitative Study
Persona Analysis
Persona

Sarah

Steve

Regina

42

27

16

Female

Male

Female

Household

Three children

Single

Single

Occupation

Parent

Real Estate Agent

Student

LOW

MEDIUM

HIGH

Tech.

(Email, Google, and

(Uses email at work but

(Actively uses social

Aptitude

occasionally IM that

prefers the traditional

media and email to

were set up for her)

way in doing business)

share information)

Age
Gender

No interest in new

Passive in updating

Used to new

technologies

technologies

technologies

Product

Move pictures to free

Send pictures directly

Share pictures with

Usage

up camera memory

to clients

friends

Customer

Simplicity

Simplicity

Greater Control

Needs

Speed

Convenience

Convenience & Speed

Mindset

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Target Customer Segment
Based on the comparison of three personas, as detailed in the table above, Ontela should
target the segment represented by Steve, the young professional, based on considerations
for both the company itself and the wireless carriers, who are its direct customers. Since
the goal is to provide the biggest opportunities for both parties, who have different goals
for their businesses, Steve proves to be the most appropriate target in that as he becomes a
customer for Ontela by using the service to simplify communication with his clients, he will
also need to upgrade to a wireless handset and subscribe to data services that has higher
margins, essentially presenting a win-win situation for both Ontela and carriers. Secondly,
the simple and convenient service offered by PicDeck accommodates the targets level of
acquaintance with new technologies and satisfies their needs; combine that with the target
segments ability to afford such services, it is logical to target young professionals. Although
this segment will likely be less frequent users of the service compared to teenagers because
they have very little time to themselves and do not take and share pictures as often as teens
do, their desire to stay competitive in the professional field through technology is a great
motivator for them to become as technologically acquainted as the younger segment. Since
wireless carriers are who Ontelas direct customers are ultimately, targeting a segment that
is less saturated with wireless technology but possess both the ability to afford and a desire
to upgrade will help both expand the carriers businesses and Ontelas opportunities.
Product Positioning
Key Values
Since the target group is not very well acquainted with many of the recent technologies and
desire simplicity and convenience as core features, such must be clearly conveyed to the

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target segment by means of stressing the effortlessness of PicDeck in that it automatically
delivers pictures to designated locations and that this service is convenient in that it can be
accessed anytime, anywhere. Additionally, extra motivational factors that target young
professionals should also be conveyed in order to add perceived value to the product. So
factors such as reliability of the delivery and the ability to monitor photos sent right on the
handset would appeal to someone who wishes to use PicDeck for professional purposes
rather than personal tasks.
Positioning Statement
No matter where you are or how busy you are, trust Ontela PicDeck for a simple and
accessible imaging solution that allows you to seamlessly and reliably transfer pictures on
your camera phone to any networked location you designatecomputer desktop, email
inbox, ANYWHERE!without pressing any extra buttons.
Risks
Selecting target customer segments from only qualitative personas is risky in several ways
but first and foremost in that one assumes the persona to be representative of the entire
segment and ignores those misrepresented by their respective personas, e.g. a young
professional who is a frequent user of the newest technologies and actively seeks better
technology solutions to improve his life or a teenager who is not as active as his/her peers
on social media or in sharing photos. This leads the company to overestimate demand in
their target segment while missing opportunities by neglecting potential customers in
other segments. Secondly, the lack of quantitative data also undermines the estimate of the
potential market and may direct the company to invest in a small portion of the population,
from whom the returns might be low, e.g. the smaller group of teenagers in an aging society.

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Quantitative Study
Cluster Analysis
In order to identify and evaluate the segments based on preference data, variables such as
technology aptitude (Q1), potential usage of the service (Q2, Q4), main reason for using the
service (Q6-Q9), deciding factor in making the purchase decision (Q10), and the acceptable
price level (Q13) are useful whereas variables that reveal wireless handset usage in
relation to technology specifications (Q3, Q5) are less useful.
Descriptive Profiles
People in this segment are relatively apt at uploading photos from their phones and
(1) Value Seekers

are the most willing to switch to use phone cameras if the quality is high and process
to transfer pictures is easy because of their activity in sharing photos and accessing
photos from different devices. They are relatively quick to adopt new technologies
and take into consideration the simplicity of setup process when deciding to buy a
new tech product. This segment is willing to pay at a price level close to the overall
average for PicDeck.
show a commitment to digital cameras even if phone camera improve in quality or is
Photo-sharer

(2) Neo-Traditional

People in this segment are averagely apt at transferring pictures out of phones but
more convenient. They do demonstrate a desire to have access to pictures from PC
and sharing them via email. They show passiveness in upgrading to the newest
technology and seek out easy to use products while also looking for the best prices
around. They are willing to pay at a price level slightly above the overall average for

(3) Trend Follower

PicDeck service.
People in this segment experiences some troubles in uploading phone pictures but
do not consider the ease of the setup process when deciding on new tech products.
They are quick to adopt new technologies and seek out the best price when making
the purchase. People in this segment allocate greater value to photo sharing via
email or social media and backing up or accessing photo on PC. They are also willing
to pay a high price level for PicDeck service.

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refrain from rushing to upgrade to newer technologies. Take into consideration the
Techie

(4) Quality-driven

People in this segment have the easiest time uploading pictures from phones but
ease of setup and prices in the market when deciding on new tech products, people
in this cluster do not show much passion for photo sharing although they seem
willing to switch to or increase their use of phone camera on basis of higher quality.
This group is only willing to pay a relatively low price for PicDeck.
and are the slowest to upgrade to newest technologies. They do not show much zeal
Seekers

(5) Convenience

People in this segment have the most challenges in using new technology products
for photo sharing but would like to have their pictures backed up. They also show
the willingness to switch to phone camera if it means simpler process and better
quality results. The least price sensitive out of all 6 clusters, people in this segment
accept PicDeck at the highest price level.
(6) Traditionalist

People in this segment are relatively apt at uploading pictures from phones but are
passive in keeping up with new developments and when they do, they put in efforts
to search for the best price. They do not intend to use phone camera as an
alternative to digital cameras and show minimal interest in transferring pictures
between phone and PC or sharing them over Internet. They are only willing to pay at
a very low price level for PicDeck services.

Data from this survey goes to demonstrate the variances in values and objectives that
transcend demographic segments represented by personas and divides the customer base
into finer segments. The information presented also challenges the assumption that those
who are acquainted with technology developments are also quick to adopt new ones (e.g.
cluster 4 is familiar with imaging technology but takes time in adopting new tech) and
points out the possibility that those who may not be too familiar with recent technology
can be quick to take up the new products without taking into consideration how difficult
the setup will be (e.g. cluster 3 does not think it is easy to upload pictures but is quick to
adopt new tech).

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Revised Profiles
interest in tech magazines/web sites. Majority of male, aged between 25 and 40,
the segment contains a high percentage of individuals who has data plans on
their cell phones. Nearly half of the segment also has message pack subscription

Value Seeking Techie

(1) Value Seekers

People in this segment demonstrate the highest internet use and strongest

on their phones. People in this segment are relatively apt at using phone photo
technology and are the most willing to switch to phone cameras if quality and
mobility of photos are ensured since they are active in photo sharing and value
the ability to access photos from various platforms. They are relatively quick to
adopt new technologies and are willing to pay at a price level close to the overall
average for PicDeck.
The majority of people in this segment are between ages 25-40 and married with
15% have subscriptions to data plans. Having one of the lowest Internet usages,

Photo-sharer

(2) Neo-Traditional

children. Over half of the segment has family plan for their cell phone and only
this group does not show much interest in following technology developments or
upgrading to the latest gadgets. People in this segment are averagely apt at
transferring pictures out from phones but they show a commitment to using
digital cameras. They seek out easy to use products while also looking for the
best prices around. They are willing to pay at a price level slightly above the
overall average for PicDeck service.

(3) Trend Follower

Consist of mostly people younger than 25, over half of this segment has message
pack subscriptions and is part of family plan for cell phone; less than half pay
their own cell phone bill. Mostly single without kids, people in this segment
demonstrate strong internet usage and photo sharing desires. People in this
segment experiences some troubles in uploading phone pictures but do not
consider the ease of the setup process when deciding on new tech products. They
are quick to adopt new technologies and seek out the best prices. They are willing
to pay at a high price level for PicDeck service, however.

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one-third is married. Many people in this segment are subscribers to message

Moderate Blogger

(4) Quality-driven Techie

The majority of this segment is male and between ages 25 and 40 but only about
pack and almost half of the cluster has data plans on their cell phones. Showing
heavy Internet use, this group also expresses strongest interest in sports-related
channels. People in this segment have the easiest time uploading phone photos
and do not rush to upgrade to new technologies. Take into consideration the ease
of setup and the prices in the market when purchasing new tech products, people
in this cluster do not show much zeal in photo sharing. They are willing to pay at
a relatively low price for PicDeck services.

(5) Convenience Seekers

Over half of the segment is between ages 25 and 40 and about two-thirds of them
married. Only about one-third has data plans on his/her cell phones and about
40% are subscribers of message pack and enrolled as part of family plan. People
in this segment have the most challenges in uploading pictures from their phones
and are the slowest to upgrade to newest technologies. They do not show much
zeal for photo sharing but would like to have their pictures backed up. They also
show the willingness to upgrade if it means simpler and better quality results.
The least price sensitive out of all, people in this segment also accept PicDeck at
the highest price level.
This segment contains the highest percentage of those over 40 and the lowest

(6) Traditionalist

percentage of those who are subscribers of either data plans, message packs, or
family plans. Having minimal interest in technology, this segment has little desire
to keep up with new developments. People in this segment are relatively apt at
uploading pictures from phones and search for best prices when buying new
tech. Showing minimal interest in transferring pictures between devices or
sharing photos, this group remains committed to use digital cameras even if
phone camera is of higher quality and more convenient. They are only willing to
pay at a very low price level for PicDeck services.
For the most part, the initial profiles created based solely on preference data are confirmed
and supplemented by additional data on demographics and media usage. For cluster one
and cluster four segments, however, the initial profiles did not accurately reflect the nature

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of the groups. For cluster one, the segments interest in technology developments was not
visible in the preference data and so they were assumed to seek easy to use products that
satisfy their needs whereas segment represented by cluster four was assumed to be tech-
savvy because they agreed mostly strongly with the statement that uploading photos from
phone is easy but shown to have minimal interest in technology developments.
Target Segment
Based on the cluster analysis, segment represented by cluster one (Value Seeking Techie)
should be targeted for PicDeck because they demonstrate demands that can be fulfilled by
PicDeck service, such as transferring pictures from phone to other devices or to share them
via email and social media, and adopt new technology at a relatively high speed in addition
to the fact that the simplicity of PicDeck easily satisfies cluster ones desire for an easy-to-
use tech product. Their interest and following of technology magazines/websites also make
them easy to reach to promote PicDeck. Furthermore, 91% of this segment pays cell phone
bill independently, indicativeto some extentof this segments ability to afford this
service. Seeing that 72% of the group already has data plan on cell phones, PicDeck will be
used as a potential tool to decrease customer churn for carriers rather than to increase the
number of customers in this segment. This also coincides, in a large part, with the target
customer segment determined based on personas in the first half of this case.
Positioning Statements
For Target Customers
For a reasonable price, Ontela PicDeck promises an easy and reliable transfer of pictures
from mobile devices to any networked locations, such as computer desktop, email, or any
social networking sites, without the need to press any extra buttons. Capture moments of

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your life on your mobile phone and share them, organize them, keep them safe, without
having to deal with the troublesome process of manually moving pictures to desired
network locations by means of USB connection or as attachments in emails or in messages.
For Wireless Carriers
For wireless carriers who are striving to deliver unique and high-value services to your
subscribers, Ontela PicDeck is an innovative and user-friendly mobile service that adds
value to your proposition by providing a simple and seamless image transfer experience
that your customers desire. Allow your subscribers to move their pictures out of their
handsets and to any designated locations without any hassles as PicDeck automatically
delivers users pictures to wherever they want, whenever they want.